Warning: Use of undefined constant referer - assumed 'referer' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 102

Warning: Use of undefined constant host - assumed 'host' (this will throw an Error in a future version of PHP) in /usr/home/essaywo/public_html/essays on line 105

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 106

Warning: Cannot modify header information - headers already sent by (output started at /usr/home/essaywo/public_html/essays:102) in /usr/home/essaywo/public_html/essays on line 109
Businesses And Goodwill Charges - College Essays

Businesses And Goodwill Charges

Outline of Wall Street Journal article on Goodwill

This article discusses changes in the way businesses record and report their "goodwill" charges.
Goodwill refers to the difference between the purchase price of a company's acquisition and the value of the acquired company's hard assets. Corporations that acquire a company at an inflated price can charge the loss to their books as an intangible asset called "goodwill."
Previous accounting standards required corporations to amortize these goodwill charges. They could write these charges off in small, regular chunks each quarter over years or decades, until the goodwill charges were gone.
New accounting standards, however, ...

Want to read the rest of this paper?
Join Essayworld today to view this entire essay
and over 50,000 other term papers

new accounting standards have key implications for companies like AOL, which earlier this year acquired Time Warner at what is now recognized as an inflated price. Companies like Lucent Technologies, and electronics manufacturers Sanmina and Solectron are also facing potential goodwill write-offs which could place their debt-to-capital ratios over limits agreed upon with creditors, resulting in major losses for their ...

Get instant access to over 50,000 essays.
Write better papers. Get better grades.

Already a member? Login

CITE THIS PAGE:

APA
MLA
Chicago
Turabian

Businesses And Goodwill Charges. (2015, October 7). Retrieved December 23, 2024, from http://www.essayworld.com/essays/Businesses-And-Goodwill-Charges/105055

"Businesses And Goodwill Charges." Essayworld.com. Essayworld.com, 7 Oct. 2015. Web. 23 Dec. 2024. <http://www.essayworld.com/essays/Businesses-And-Goodwill-Charges/105055>

"Businesses And Goodwill Charges." Essayworld.com. October 7, 2015. Accessed December 23, 2024. http://www.essayworld.com/essays/Businesses-And-Goodwill-Charges/105055.

JOIN NOW

Join today and get instant access to this and 50,000+ other essays

PAPER DETAILS

Added: 10/7/2015 02:31:26 AM
Category: Business
Type: Premium Paper
Words: 244
Pages: 1

Save |

Report

SHARE THIS PAPER

SAVED ESSAYS

Save and find your favorite essays easier